Gary Shilling & Peter Schiff: Washington ‘Clown’ Set Up 42% Stock-Market Drop. Many Other Cliffs Await The US Economy, With Bigger Risks. The Collapse Not Only Possible But IMMINENT.

One fiscal cliff down. Three more to go: The $16.4 trillion Federal Debt Limit cliff, the $1 trillion Sequestration Cuts from defense and discretionary spending and the $2.5 trillion Congressional Budget cliff.

No wonder investors are being warned of a 42% market drop by Gary Shilling, long-time Forbes columnist and one of the world’s top economists, author of “The Age of Deleveraging.”

But if you really want to know why American markets are going into another bear crash, check out Bloomberg/BusinessWeek’s latest cover. It will win the “Political Cartoon of the Century” for the best snapshot of the totally dysunctional state of Washington … the real reason markets will crash and our economic recovery will be a sluggish handicap race with low GDP growth.

Bloomberg’s cover is a classic: You see an shot inside the Congressional building, with “Babies” in huge bold cap letters. Subtext: “The politics of the fiscal cliff deal are outrageous. The economic thinking even worse.” You look closely. No senators. No representatives. All you see are hundreds of babies, whining, throwing temper tantrums, balling and generally raising hell just because that’s what crybabies do. Get it: 435 representatives and 100 senators, all acting like immature children.